Ops, apparently there are a list of banned domains that you are not allowed to use with Office365. I happen to own one of them and its really nothing inappropriate or anything like that.

Anyway, you are able to add the domain but at step two when its time for verification you walk in to a wall and gets the error shown above in your face.

I would really like to know the official policy regarding this and of what names you are allowed to use on Office 365 and what kinds Microsoft don’t want on their service.